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CGT small business concessions and contributions to super

Partners in a partnership

Section: 8.14

If the asset being sold is an asset of a partnership that is a CGT small business entity, the basic conditions require the CGT small business entity to be a partner in that partnership.

2018 Federal Budget Proposal

Effective 8 May 2018, the small business CGT concessions are proposed to no longer be available to partners that alienate their income by creating, assigning or otherwise dealing in rights to the future income of a partnership. This is a tax integrity measure to stop certain taxpayers, including large partnerships, from accessing the small business CGT concessions in relation to their assignment of a right to the future income of a partnership to an entity, without giving that entity any role in the partnership.

The Government released the draft legislation19 in November 2018 aiming to enhance the integrity of concessions in relation to partnerships. However, at the time of writing, this proposal is not law.

Last modified: Wednesday, July 24, 2019